Media giants Comcast and Disney have both reported "peak" losses in the streaming business. This comes as investment in Paramount Global's Paramount+ streaming service is at a high, potentially boding well for profitability.
The stock market has been unkind to media, cable, and entertainment giants this year, wiping out over $500 billion in market capitalization. In response to these challenges, companies are focusing on cost-cutting measures.
Disney recently reorganized its business into three separate units and began laying off 7,000 workers with the goal of slashing $5.5 billion in costs. CEO Bob Iger has hinted that Hulu could be on the chopping block as Disney approaches its deadline to buy out Comcast's 33% stake in the company.
Meanwhile, Comcast and Warner Bros. Discovery are also considering cutting costs by potentially getting rid of Hulu altogether.
Despite these struggles within the streaming industry, there is optimism with regards to Paramount+. Both Paramount Global and Disney have reported high investments into this platform which could lead to increased profits down the line.
With so much uncertainty surrounding the streaming business right now due to changing consumer habits and technological advancements like NFTs (non-fungible tokens), it remains unclear what will happen next for these media giants. But one thing is certain: they will continue fighting to maintain their position at the top of an ever-changing industry.